Shipping Industry

Components of Shipping
The shipping industry is considered the most
international for various reasons. One is the very
nature of the industry, which is dealing with
international trade and transport across oceans. The
nature of the crew working on ships is also frequently
multinational. It can also be said that the shipping
industry can be described as a collection of
industries.
For this reason, the shipping industry is classified
according to the following characteristics:
• Type of vessels/ships
• Market sector
• The cargo which it carries
With these characteristics, the shipping industry can
be distinguished into the following:
• Bulk shipping – This consists of vessels that can transport large
quantities of bulk liquid and dry cargoes. Raw materials such as
oil, grain, ores, and coal are usually loaded in bulk shipping and
occupy most of the transporting capacity of the vessel.

• Liner shipping – This consists of vessels that transport general

cargo of smaller volumes through predetermined schedules and
routes. It is less flexible compared to bulk shipping because of the
structure of where it operates.
• Specialized shipping – This consists of vessels that transport
goods that require special conditions in handling, loading, and
discharge. It applies the principle of “one vessel, one cargo” as the
quantities are loaded in units and not in bulk. Some of the
specialized cargo are motor vehicles, forestry products,
refrigerated foods, and liquid gas.

• Passenger shipping – This type of shipping is entirely different

from the previous three (3) in terms of organization. However, the
market sector it serves is not entirely different as passengers who
use this service do not share common characteristics. The
demand for passenger shipping varies depending on the purpose
of travel.
 Vessels used in
passenger shipping
Passenger shipping is an important part of the
tourism industry as it is another mode of
transportation that helps tourists reach their
respective destinations.
The following are the basic type of
vessels used in passenger shipping:

• Cruise ships – These are specially designed

vessels for providing recreational voyages to
passengers.

• Ferry boats – These are vessels that carry

passengers and vehicles on regular routes and
timetables that link two (2) or more ports. It can
also be referred to as Roll-on, Roll-off (RORO)
ferries.
• Catamarans – These vessels have limited
capacity but can travel at higher speeds. It has a
double bottom, which is an underwater part of
the vessel that provides greater stability for
difficult weather conditions.

• Hovercrafts – These are high-speed vessels

with inflated air-cushions on their bottom part.

• Hydrofoils – These are smaller vessels that

have limited capacity but can travel at high
speeds. The body of the vessel sits on the water
surface while the hydrofoils are submerged to lift
the vessel’s body.
 EMENTS
EL OF
CRUISING
 CRUISING INDUSTRY
Cruising is an experience that can be generally described
as “a vacation trip by ship.” However, many different
types of cruise experience offer unique themes to
passengers. The variations are extremely diverse. There
are different legal definitions of what a cruise ship is
depending on the country.
 CRUISING INDUSTRY
In the United States, it is defined as a passenger's vessel
over 100 gross tons, carrying more than 12 passengers for
hire, making voyage lasting more than 24 hours, any part of
which is on high seas, and for which passengers are
embarked or disembarked in the United States or its
territories.
 CRUISING INDUSTRY
In Europe, its department of transport (as cited in Gibson &
Parkman, 2019) defined it as a transport service by sea or inland
waterway, operated exclusively for pleasure or recreation,
supplemented by accommodation and other facilities, exceeding
two overnight stays on board. It is also defined as a business in
which its activities can fall under the guise of maritime tourism,
cruise tourism, or maritime leisure. Despite its growth, it is still
argued that cruise is only a small sector of the tourism industry
and not an industry in its right. However, some elements support
its claim as an industry which can be referred to as the four C’s.
 The Four C’s of the
Cruising Industry
• Culture – The culture in which the cruise industry operates is a mixture
of hospitality and maritime. The cruising culture is manifested through
the distinct terminologies and jargons used by cruise workers.

• Contracts – Cruise contracts indicate the type of operations in a

vessel and the working and living conditions of the crew onboard,
which is subject to international regulations.
 The Four C’s of the
Cruising Industry
• Context – In cruise context, the working environment changes from
landscape to seascape. It provides an attractive experience to passengers
and tackles political matters such as freedom of passage when traveling,
among others.

• Community – Cruise industry communities tend to be multinational,

workers are living close with fellow workers, and they are subject to
industry regulations. The nature of cruise operations in most cases is large-
scale. It can be simply described as a mobile tourist destination at sea.
 Economics of Cruising
The cruise industry is generally represented as a business
engaged in the production of pleasure for profit. The
cruise business model has been more dependent on
revenue generated onboard, which are the sales
generated above that which was paid for the cruise ticket
(e.x. shore excursion fees, food and beverage sales, spa
treatments, entertainment). However, there are cruise
companies that don’t use this business model and
position themselves as luxury types, in which all amenities
within the cruise ship are inclusive of the cruise ticket.
The main costs associated with the cruise industry include:

• The vessel – This refers to the ship/s that will be used

for cruise operations.

• The crew – This is the labor/manpower who will handle

cruise operations.

• Fuel and consumables – These are necessary materials

that help the cruise and its operations run.
The main costs associated with the cruise industry include:
• Administration – This includes clerical
tasks/documentation. The cruise business relies on
people the most, with the ratio of the customer to crew
averaging around 2:1 or 3:1 (Two or three customers are
served by one crew member). The number of crew on
board should be able to cover all periods of operations,
including leave and contracts, which adds to the cost.
Larger ships require more complex tasks and
combinations of manpower with different expertise.
 Cruise Products
The cruise product, in general, has three (3) economic features,
which are:

• Heterogeneity – The cruise product offers an extensive mix of

experiences through the products that are unique to each guest on
board.

• Inelasticity – Cruise products are perishable and, if not sold,

considered as a loss.

• Complementary – The cruise product is a series of services put

together to form the whole cruise experience.
Overall, the cruise product is a package that consists of the travel to the
port of embarkation, different itineraries, and inclusive services/facilities.
The following are the elements that comprise the entire cruise product:

• Accommodation – Cruise lines offer different types of accommodations to

their guests, ranging from a simple cabin to penthouse suites, all depending
on the vessel size and capacity. Some accommodation types may also
include some form of entertainment and upgraded facilities such as
television, jacuzzi, and balconies with furniture, among others.
• Food and Beverage – Cruise ships are usually viewed as a place to enjoy
good food and good company, in which it offers a variety of food and
beverage services to its guests. The cruise ship dining experience may be
offered through the following types of services:

Buffet – A buffet service is a flexible dining service that offers various food
and cuisines to passengers. It may change the types of food depending on
the time of service (from breakfast to lunch and lunch to dinner). This is
usually self-service, and guests may stack their plates as much food as they
want.
Restaurant – Cruise lines have a main restaurant that varies in terms of the
type of services. Service types may depend on the brand of the cruise line
and guest expectations. Some main restaurants may have a certain dress
code for guests that emphasizes luxury and formality. This is an option for
guests who tend to opt for a more intimate dining experience.

Bars – This establishment offers a variety of drinks such as cocktails, wines,

liquor, and beers to guests, and is usually busy after dinner hours. There are
different themes that a bar may have, such as sports bars, lounges, and
nightclubs that cater to different types of guests onboard.
• Entertainment – This element of cruise products offers entertainment
activities to guests. Different forms of entertainment activities may include
the following:

Theatres – Serves as the venue for several headline entertainment

activities such as musical extravaganzas, comedy clubs, magic shoes, and
the like. This provides the largest venue that gathers guests altogether.

Daytime activity program – There are daily events in cruise ships that
provide some form of entertainment activities, usually published in the
ship’s newspaper or bulletin board. These may include activities such as
dance instructions and arts and crafts demonstration.
Music and cinema – Usually held at theaters and performed by musicians. It
can also provide support to the ship’s bars and lounges for music needs.
Cinemas are operated by technicians who procure and show movies.

Leisure products – This consists of onboard sport and recreation activities

such as skiing, golf, scuba, windsurfing.
• Shore excursions – This element adds value to the cruise experience
through tours that are conducted when ashore. It can range from traveling
by foot to by coach, depending on the port of destination. Cruise
companies may use a third-party option (tour providers) or have a tour
operator of their own.

• Wellness – This element is usually provided through an arrangement from

companies/professionals specializing in such. There are well-known
wellness providers that operate on cruise ships and offer treatments such
as massage, hairstyling, yoga, manicure, and pedicure.
• Shops – This is the element of the cruise product that lets guests purchase
certain items on board, such as jewelry, apparel, gift items, and delicacies,
among others.

• Casinos – Some cruise lines provide casinos to meet their guests’ desire to
gamble and feel a little bit of action and excitement onboard.
PASSENGER
FERRY
TRANSPORTATION
Ferries have been a part of history and are still
currently used as an important mode of transportation
worldwide. Compared to cruise, ferries and their
variations are generally used for transportation
purposes only and without any of the entertainment or
leisure factors that cruise lines offer.
PASSENGER FERRY
TRANSPORT VARIATIONS
Ferry transport uses different types of vessels depending on
the purpose of travel; some are the following:
• Roll-On, Roll-Off (RORO) – This includes large ships that can
carry both passengers and vehicles.

• Water taxi - This includes small boats that usually operate on

rivers or other smaller water areas.
PASSENGER FERRY
TRANSPORT VARIATIONS
• Train ferry – This includes ships that are designed to carry
train wagons and railway vehicles.

• Ocean liners – These were the primary mode of

intercontinental transport during the 19th century.

• Yacht – This includes small ships used for leisure such as yacht
parties, watersports activities, or simple relaxation.
THERE ARE ALSO DIFFERENT LEVELS OF SERVICE WHEN IT COMES
TO PASSENGER FERRY TRANSPORT. THESE ARE THE FOLLOWING:

• Urban – This level of service is usually integrated with the land

transportation system, common in destinations with waterfront
areas such as ports and rivers. Urban ferry service expands
urban mobility and serves commuters dwelling in the area and
the tourists. It also connects remote urban communities, urban
areas where land travel takes longer, and areas where
construction of Infrastructure links such as bridges are
impossible.
THERE ARE ALSO DIFFERENT LEVELS OF SERVICE WHEN IT COMES
TO PASSENGER FERRY TRANSPORT. THESE ARE THE FOLLOWING:

• National/Regional – Ferry services in this level supplement the

regional road networks, especially in archipelagos and coastline
areas. It serves both passengers and freight using larger
vessels.

• Cross-border – Operators in this level of ferry service comply

with distinct requirements and regulations depending on the
territories they intend to cross. Passengers crossing borders via
this level are passport-checked by border control in seaports.
 PORT
TU R E S
STRU C
Historically, ports are a paradigm of how a nation’s economy and
foreign policy work. The economic fundamentals can be identified by
the sizes and types of ships and the commodities it carries. It was and
still is considered a strategic economic point.

The fundamental function of ports is to provide shelter to offshore or

inland ships, while doing on-shore ship activities such as managing
human resources, cargo materials, and financial resources, among
others. Port authorities are responsible for harboring and securing ships
and ensuring the proper anchorage, loading/unloading operations, and
handling of cargoes.
 HARBOR
Harbors are often mistaken for ports,
which is just described in the passage
above. Harbors are described as land
areas or structures designed to protect
port areas from winds, currents, and
waves, allowing for port activities to
occur. It can be natural or artificial,
although most of its configuration
possesses both elements.
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 QUAY WALLS
It is an area of land or structure where
vessels are parked and their
passengers/cargo are
loaded/unloaded. There are varieties
of wall types used for quays depending
on the cost, durability, and conditions
of the site. One (1) wall type may be
suitable in one (1) area and may not be
in another.
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 JETTY/WHARF
It is a free-standing structure built like
a walkway extending to the sea/ocean.
It allows the parking of vessels on both
sides. Jetties or wharves are usually in
the shape of a T, L, or U. The most
common structure used for jetties are
concrete and constructed over
deckings or skeletal structures of
beams on piles. It is usually used for
small- vessels.
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 DRY DOCKS
It is a narrow structure that is resistant
to forces from water currents and is
used for parking vessels. Dry docks are
flooded when vessels are being used
and dewatered when vessels are
stored.

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 BOAT RAMPS
These are structures with a sloping
paved surface that is used for
launching small vessels. The ramp’s
measurement usually goes from the
level of the land surface towards the
top point below the low tide water level
that provides enough depth to let the
vessel float when launched.
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 THANKYOU
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